What are the basic steps in the strategic planning process?
“…sophisticated tools of forecasting and business analysis…strategic plans, usually fail to produce dramatic breakthroughs…They are designed for detail complexity…There is a second type of complexity…dynamic complexity”
Peter Senge, Author, The Fifth Discipline
In today’s highly competitive environment, a firm must engage in a strategic planning process to work through the complexities of business. The process is not as important as the wisdom applied.
A short sighted view of solely managing an organization by budget planning or forecast planning is insufficient to prosper.
A simplified view of the strategic planning process is shown by the following diagram:
The “must-do’s” of strategic planning:
- Include all key stakeholders
- Think big
- Be patient and flexible
- Know that there is no one best way
- Have a clear vision of the future state
- How often depends on the environment
- Incorporate it into the business and meetings
- Write down the planning information and communicate it widely
- Build in accountability
- Note deviation from the plan and re-plan accordingly
- Evaluate the planning process and plan: the process is as important as the plan
- Acknowledge and celebrate successful results
- Have an internal champion who will drive the process
Don’t be a planning fatality: The Top 7 Strategic Planning Mistakes.
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